State Gas has outlined the impact of having access to its Rolleston West project area in the southern Bowen Basin blocked by the landowner for 18 days last month.

Being locked out for that period has impacted the company’s high density natural gas (HDNG) operation, where the Rougemont 2/3 dual lateral well system now requires a further process of dewatering, and a drilling program has been delayed.

State Gas anticipates that managing the draw-down process at the HDNG operation to ensure underlying coal structures are not damaged will take about six to eight weeks.

As a consequence, it has agreed with its HDNG customer to suspend delivery arrangements, with the intention of resuming in the first quarter of next year.

In the interim, State Gas, its partners and customers will undertake optimisation work on the supply chain to support an increase from two to six mine trucks using HDNG when supply recommences.

The company said also that blocked access to drill-pad locations had resulted in its Rolleston West drilling program not being completed prior to the start of the wet season, as originally planned.

With wet weather experienced over the last week making access difficult, the company has assessed the forecasts and drill rig standby costs and decided to defer commencement of the drilling campaign until the first available clear weather window in early 2025 (expected to be in March-April).

“Deferral of the drilling program and disruption to our HDNG supply arrangements are frustrating by-products of having our land access blocked for an extended period,” managing director Doug McAlpine said.

“Despite this, we are focused on delivering on our overarching strategy and plan.”